ACCA Applied Knowledge · Business and Technology · Review and appraisal of individual performance
Under management by objectives (MBO), which feature best describes how an employee's performance is appraised?
In management by objectives, performance is appraised by reviewing results against targets that the employee and manager agreed together in advance. The focus is on outcomes achieved, rather than personal traits or comparison with colleagues.
- AComparison of the employee's traits against a standard list of personal qualities
- BReview of results achieved against targets agreed jointly between the employee and managerCorrect
- CRanking of the employee against colleagues in the same department
Explanation
MBO involves setting targets jointly, then reviewing actual results against them. Trait lists and ranking are different approaches, focusing on personal qualities or relative standing rather than agreed goals.
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